14 Raw materials Work in process Finished goods $ 40,000 $ 18,000 $ 35,000 Part 14 of 15 The company applies overhead cost to jobs on the basis of direct labor hours. For the current year, the company's predetermined overhead rate of $16.25 per direct labor-hour was based on a cost formula that estimated $650,000 of total manufacturing overhead for an estimated activity level of 40,000 direct labor-hours. The following transactions were recorded for the year look a Raw materials were purchased on account, $510,000 b. Raw materials use in production, $480,000. All of of the raw materials were used as direct materials c. The following costs were accrued for employee services: direct labor, $600,000; indirect labor, $150,000, selling and administrative salaries, $240,000 d. Incurred various selling and administrative expenses (eg, advertising, sales costs, and finished goods warehousing). $367,000. e incurred various manufacturing overhead costs (eg, depreciation, insurance, and utilities). $500,000 1. Manufacturing overhead cost was applied to production. The company actually worked 41,000 direct labor-hours on all jobs during the year g. Jobs costing $1,680,000 to manufacture according to their job cost sheets were completed during the year. h. Jobs were sold on account to customers during the year for a total of $2,800,000. The jobs cost $1,690,000 to manufacture according to their job cost sheets Foundational 3-14 14. What is the gross margin for the year? Gross margin 7. What is the ending balance in Work in Process? Work in Process Beg. Bal. (b) (c) 18,000 480,000 600,000 666,250 (f) End. Bal. 1,764,250 Required: 1. What is the journal entry to record raw materials used in production? (If no entry is required for a transaction/event, select journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the raw materials used in production Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal 2. What is the ending balance in Raw Materials? Raw Materials Beg. Bal. End. Bal. 0 0 3. What is the journal entry to record the labor costs incurred during the year? (If no entry is required fo "No journal entry required" in the first account field.) View transaction list Journal entry worksheet